CHAPTER REVIEW EXERCISE

1. The table below shows the price of the price indices and weightages of four items for the year 1997
based on the year 1995.

Item Price Index Weightage

P 115 3
Q 105 2m
R 130 3m
S 121 5
A. The composite index of the items for the year 1997 based on the year 1995 is 119. Find the value
of m.
B. The price index of item P increases 20% and the price index of item S decreases by 10% from the
year 1997 to the year 1998. Price indices of the other items remain unchanged. Find the composite
index number of the items for the year 1998 based on they year 1997.

2. The crude palm oil production of a plantation was 1.35 million tons in the year 2000, x million tons
in the year 2002 and 1.42 million tons in the year 2004. Calculate

A. The index number of production for the year 2004 based on the year 2000,
B. The value of x, given the index number of production for the year 2002 based on the year 2000 is
92.
C. The index number of production for the year 2005 based on the year 2002 if its index number of
production for the year 2005 based on the year 2004 is 120.
 3. Listed below are the price indices and percentages of usage of four ingredients, namely egg, sugar,
flour and butter in baking a certain type of cake.
Ingredient Price Index for the year 2002 Percentage of usage
(2000 = 100)
Egg 125 40
Sugar 110 35
Flour 115 15
Butter 140 10
Calculate the composite index of the cost of the cake production for the year 2002 based on the year
2000.

4. The table below shows the prices of vegetables A,B,C,D and E in the years 1993 and 1994 and the
corresponding price indices and weightages.
Vegetable Price in the year Price in the year PI for the year Weightage
1993 (RM) 1994 (RM) 1994 (1993 =100)
A x 1.00 125 8
B 2.00 3.00 150 5
C 5.00 y 90 3
D 3.50 3.50 100 7
E 4.00 4.60 z 2

A. Find the values of x,y and z.

B. Calculate the composite index of the vegetables for the year 1994 based on the year 1993.
Application
5. Budget
The table shows the price indices for the year 2002 based on the year 2001 and the
monthly expenses for the year 2002 for Azmi.
Item Price Index Monthly expenses (RM)
Food 110 420
Rental 112 150
Clothes 115 500
Fuel 108 105
Miscellaneous 140 625
A. Calculate the composite index of Azmi's monthly expenses for the year 2002 based on the year 2001.
B. Find the monthly expenses of Azmi in the year 2001.
C. In the year 2003, Azmi's monthly expenses for rental and miscellaneous were increases to RM200 and
RM850 respectively. Find
i. The price index of rental for the year 2003 based on the year 2002
ii. The price index of miscellaneous for the year 2003 based on the year 2002.
6. Infrastructure
The table below shows the price indices and percentages of usage of materials P,Q,R,S and T for the year
2003 and the year 2004 based the year 2002. P,Q,R,S and T are the main materials constitute to the cost
of road building.

Material Price Index Percentage of usage (%)

2003 2004
P 115 140 30
Q 125 130 20
R 110 115 25
S 105 112 15
T 110 95 10
A. Calculate the composite index of the cost of road building for the year 2003 and the year 2004 based
on the year 2002.
B. Given the cost of material Q in the year 2002 was RM550. Find the cost of material Q in the year
2004.
C. The cost of road building was RM45000 in the year 2003. Find the corresponding cost of road building
in the year 2004.
7. Service
The table below shows the price indices and weightages of five services, namely education, health,
tourism and others.

Service Price Index for 2004 (2002 = 100) Weightage

Education 135 10
Health 140 4
Insurance 120 2
Tourism 115 3
Others t 6

A. Calculate
i. The cost of education in the year 2002 if its cost in the year of 2004 was RM270,
ii. The price index of insurance in the year 2004 based on the year 2000 if its price index in the
year 2002 based on the year 2000 is 105.
B. The composite index of cost of services for the year 2004 based on the year 2002 is 129. Find the
value of t.
8. The table below shows the price indices and weightages of 4 reading materials, namely book,
magazine, newspaper and software purchased by a school resource centre.
Reading material Price Index for the 2004 based on 2001 Weightage
Book 140 5
Magazine 155 4
Newspaper 130 2
Software 125 1

Calculate
A. The composite index of the cost of purchase for the year 2004 based on the year 2001,
B. The cost of purchase of the reading materials in the year 2004 if the corresponding cost for the
year 2001 is RM12000.
9. Health
The table below shows the price indices and weightages of five health products consumed by Tan.
Health Product PI for 2000 (1998 =100) PI for 2002 (2000 =100) Weightage
A 115 150 12
B 110 105 16
C 105 120 8
D 120 130 9
E 125 100 5

A. Calculate
i. The price of D in the year 1998 if its price in the year 2000 was RM42.
ii. The price of A in the year 2002 if its price in the year 1998 was RM30.
B. Tan paid RM260 per month in the year 1998 for the five health products. How much should he pay for
the same amount of health products in the year 2002.